Two categories of Chinese products are popular in Israel, and the logistics problem is solved

In recent years, the global cross-border e-commerce industry has developed rapidly. In addition to the mature European and American markets, the surging number of cross-border e-commerce sellers is also looking for more potential markets. Among many overseas markets, Israeli consumers enjoy cross-border online shopping and prefer Chinese products with rich categories.

During the COVID-19 pandemic, due to travel restrictions and increased home confinement, Israelis' demand for online shopping has continued unabated, with almost all types of e-commerce shopping experiencing significant growth. Chinese products are quite popular among locals' cross-border online shopping.

Two categories of Chinese products are popular in Israel

Eli Koretsky, Vice President of Business Development and Sales for Exelot China, said that Israeli consumers have been using Chinese shopping platforms for many years and have purchased a wide variety of products. Their two favorite categories of Chinese products are fashion and electronics. Therefore, Israel has become a target market for many sellers.

" Israelis are quick to adopt new technologies and products. Therefore, whether in 2021 or in the future, if any business wants to prosper and reap rich profits in Israel, it must offer competitive prices and high-quality service levels, " said Eli . The cross-border logistics solutions provided by Sukuatong can help sellers increase product sales and improve customer satisfaction in the fierce e-commerce competition.

Israel, a blue ocean market for Chinese cross-border e-commerce

Israel is a developed country with strong economic strength. In 2020 , its per capita GDP was nearly US$ 44,000 , exceeding the per capita levels of Japan, the United Kingdom and France, and its cross-border e-commerce is developing rapidly.

Although the technology level is cutting-edge, Israel and its neighboring countries do not manufacture products on a large scale, so almost all types of products need to be imported in large quantities, and the price level is relatively high. The import of goods requires various procedures and local certification, which is a long and costly process. The only solution is to do private import or B2C import, and the main way of B2C import is cross-border e-commerce channels.

Israel is the number one online shopping country among countries of similar size, and its per capita cross-border e-commerce spending ranks among the highest in the world. According to data from Statista, a global comprehensive data database , Israel's e-commerce market revenue is expected to reach US$ 4.613 billion in 2020. The largest market segment is the fashion sector, with an estimated market size of US$ 1.38 billion in the same year.

According to Statista, the national online shopping penetration rate will reach 44.7% this year, and by 2025 this figure will increase to 55.9%, expected to reach 5.2 million people. Between 2020 and 2025, Israel's e-commerce market revenue will grow at a compound annual growth rate of 12.8%, and the market transaction volume is expected to reach US$8.433 billion by 2025.

In fact, what does not match the booming online shopping in Israel is that the local logistics system is still slightly lagging behind. Solving this key link of logistics is crucial to improving the local online shopping experience and sales of cross-border sellers.

How can we get rid of the headache of cross-border logistics and sell Chinese products to Israel where demand is high? Sukuatong's two major services of door-to-door delivery and self-pickup can provide a complete set of solutions, which may relieve some sellers' worries.

Founded in 2016, Sukuaitong is an Israeli cross-border logistics company that focuses on the construction and optimization of multi-supplier platforms based on artificial intelligence. Sukuaitong has built a cloud-based multi-channel service platform, focusing on optimizing warehouse management, transportation routes and last-mile solutions, and provides complete end-to-end solutions for Chinese e-commerce and e-commerce platforms, including the door-to-door delivery and self-pickup services mentioned above. Its affordable rates and high-quality services have helped many sellers increase their sales.

Low rates and high service, multi-supplier model opens up logistics links

Unlike other logistics companies, this company adopts a multi-supplier logistics chain model, which is also its biggest advantage. This model can optimize processes and replace suppliers in just a few hours. In other words, Sukuaitong will not rely on only one company. If a supplier has a problem, the model will automatically re-distribute the package to a different supplier, or evenly distribute the package to small and medium-sized suppliers, which enables it to control rates and service quality.

Sukuaitong conducts data analysis and optimization for each package, comparing price, service quality and speed at each link in the chain, calculating the optimal solution of cost and speed, and planning end-to-end delivery routes - this enables Sukuaitong to achieve low rates (lower than most logistics companies) while ensuring service levels.

Cross-border merchants: Really increase sales

The feedback that Speedgotong has received from its customers has been very positive. In the first one or two months of cooperation, many customers have seen an increase in satisfaction and sales. In addition, its highly competitive rates, extremely low packet loss rate and high-quality services have attracted many long-term partners for Speedgotong , and most customers have established long-term cooperative relationships with it.

In China, Sukuaitong has more than 25 partners, including Alibaba, Amazon sellers, e-commerce platforms, and large and small logistics service companies. In addition, it cooperates with 5-15 clearing and express companies at each delivery destination. In addition, its team has also hired excellent Chinese employees who are responsible for managing each delivery link.

The cross-border logistics and air transportation of Sukuaitong covers the whole world , with the main departure countries including China, the United Kingdom and the United States, and the main destination countries including Israel, the United Kingdom, Dubai and the United States. In addition, it also serves many other countries: Western Europe Liege /Amsterdam line, Mexico, Brazil, Spain, France, Germany, Italy, Iraq, Poland, South Korea, Thailand, Indonesia, etc.

Unlike other logistics providers, Sukutong has built a cloud-based SaaS platform that manages cross-border logistics packages at all relevant nodes of logistics (from order to delivery) and provides real-time logistics status, including online data such as the transportation and delivery of packages. Sukutong transforms today's e-commerce logistics chain into a multi-supplier logistics chain, optimizing the freight and delivery chain. Sellers only need one platform, Sukutong , to query all express services used by the package.

In addition to basic shipping functions, the logistics company also provides logistics solutions such as pickup, sorting, import and export, land transportation, air transportation, sea transportation, and door-to-door delivery. It also provides Delivered Duty Free ( DDP ) and Delivered Duty Paid ( DDU ) services for all destinations served.

No package delivery was postponed or delayed during the epidemic

The sudden outbreak of the new coronavirus pandemic in 2020 has affected international logistics channels by sea, land, and air to varying degrees, and delays are extremely common.

In the face of the sudden epidemic, SpeedPass made the following changes in 2020 :

1. Start using separate passenger aircraft for air transport;

2. Improve the response speed to rate changes;

3. Increase the number of employees;

4. Increase the number of secondary suppliers serving sellers.

There is no doubt that the epidemic has indeed brought challenges to the logistics industry, but due to timely response, this challenge has had a positive effect on Sukuaitong .

During the epidemic, all channels of international logistics have faced a sharp price increase, especially the increase in shipping prices and large-scale delays. Eli Koretsky said: " We have a forward warehouse in Cyprus, which will receive some large-volume goods shipped by sea. We did find that the price of sea freight has increased, but so far, none of our customers have postponed or delayed the delivery of any package. "

Sukuatong 's approach is in stark contrast to some logistics companies that simply collect money and run away.

According to Eli Koretsky , many of the company's customers pay only after the delivery is complete. Therefore, the company builds trust with customers in the early stages and establishes a payment cycle that balances the needs of both parties through long-term cooperation.

How to choose a reliable logistics provider after completing the entire delivery? Eli Koretsky recommends the following approach for sellers:

1. Sign a concise, clear and legally binding contract to create a healthy and transparent cooperation atmosphere

2. Ask the logistics company to provide the tracking number of the recent order, showing more details of its relevant transportation channels;

3. Sellers can inquire about the evaluation of the logistics company and seek advice from companies and customers who have worked with the logistics company; learn more about its service details in order to judge its credibility and whether to cooperate with it.

Sukuatong is committed to optimizing the e-commerce logistics chain, including transportation routes, delivery chains and e-commerce cross-border logistics innovation systems, providing efficient and affordable services to markets and e-tailers, solving the "last mile" delivery problem in dozens of countries around the world , and achieving the best customer experience and sales growth. At present, Sukuatong has registered a wholly-owned subsidiary in Changzhou, China. With its in-depth business understanding of the Chinese market and clear strategic planning, Sukuatong is seeking Chinese cross-border logistics solution providers and strategic partners.

With the experience of working with Alibaba and Amazon sellers as well as independent platforms, one of Sukutong’s future goals is to develop some small and medium-sized markets, such as Sweden, Poland, Southeast Asia and African countries. In addition, Sukutong will continue to develop its logistics system and constantly explore how to provide better logistics services to help sellers avoid and solve cross-border logistics problems.

Israel, Logistics, Chinese Products